Barclays pushed into loss by US payout

Barclays has been pushed into a first quarter loss after paying $2bn last month to settle a lawsuit brought by the US government over the sale of mortgage-backed securities. The bank made a pre-tax loss of £236m, compared with a profit of £1,682m for the same time last year. Excluding litigation costs, pre-tax profit rose by 1% to £1.7bn. The bank said the US settlement resolved a significant decade-old legacy matter. "Chief executive Jes Staley said:"This quarter we also reached an agreement with the US Department of Justice to resolve issues related to the sale of Residential Mortgage-Backed Securities between 2005 and 2007. "While the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant decade-old legacy matter."